PocketSystematic Withdrawal Plan (SWP) Calculator
Plan regular monthly cash flows from your mutual funds. Enter your initial capital, withdrawal amount, and expected returns to see how long your retirement corpus lasts.
₹
₹
%
Remaining Balance
—
Total Withdrawals Claimed
—
Total Investment Value
—
SWP Portfolio Value Progression
SWP Capital Calculations
SWP calculations run month-by-month. Every month, the withdrawal amount is subtracted from the capital first, and then the remaining balance earns the monthly return rate:
Balancem = (Balancem-1 - Withdrawal) × (1 + r / 12)
Worked Example
If you invest ₹50,000,000 in a conservative fund, withdrawing ₹30,000 monthly for 15 years with an expected 9% p.a. return:
- Initial Capital: ₹50,00,000
- Total withdraws claimed: ₹54,00,000 (30,000 × 180 months)
- Final remaining balance: ₹77,75,419
Frequently Asked Questions
What is a Systematic Withdrawal Plan (SWP)?
SWP is a mutual fund facility that allows investors to withdraw a fixed sum of money at pre-defined regular intervals (like monthly) from their existing mutual fund scheme.
Who is SWP suitable for?
SWP is ideal for senior citizens, retirees, or anyone seeking regular monthly income from their capital while letting the remaining balance continue to compound.
Is SWP better than dividend mutual funds?
Yes, because mutual fund dividends are not guaranteed and fluctuate with market returns, whereas SWP ensures a fixed monthly amount is disbursed regardless of market movements.
How are SWP withdrawals taxed?
Each SWP withdrawal is treated as a redemption. The gains portion is taxed as capital gains. Since only a part of the withdrawal is gains, tax liability is usually much lower than salary or interest income.
What is capital erosion in SWP?
Capital erosion occurs if your monthly withdrawal rate is higher than the rate of return earned by the fund. This causes the initial principal to steadily decrease and eventually run out.